Research Services
Policy 09.008
Area:
Risk Fund Establishment
Authority: Dean of Graduate School and Research
History: Placed into effect March 2009, revised October 2011
Responsible Office: Office of Sponsored Programs
Background
In some instances, fully executed notices of award may not be received until after the
effective date of the agreement. If initiation of a project cannot be delayed until receipt of
the formal award notice, the Office of Sponsored Programs may authorize a risk fund.
Purpose and Applicability
There are circumstances under which it is in the University’s best interest to accept the risk
of authorizing expenditures prior to the formal receipt of a fully executed agreement.
Some sponsors permit a ninety (90) day window before a grant’s start date under
pre-award authority. At other times, the agreement is being held up by negotiations,
budget constraints, and passage of federal budgets. Such a delay can impair the science or
sponsored activity depending upon the timing – hiring students, ordering equipment,
seasonality of work, academic year constraints, etc. Risk funds should only be utilized
when the University is confident that funding will be received and the anticipated
expenditures are allowable within the time period being authorized.
Process
The PI and the appropriate unit head must submit a written request to OSP explaining the
circumstances requiring the establishment of a risk fund. The unit head (chair, dean,
director) must agree in writing to guarantee any expenses incurred should the award not be
finalized for any reason. The PI must submit a completed and signed request to establish a
grant fund (risk funding) form with supporting backup documentation to OSP that initiates
early establishment of a sponsored fund.
Determination of risk acceptance
OSP may deny the advance risk fund request if there is insufficient information on file to
determine that an award is pending. PI’s should submit proposal documents including
RAMSeS proposal number, award notifications, draft terms and conditions or other
appropriate award information, with the risk funding form, if the information is not already
on file with OSP. Proposal should have fully routed and be available in RAMSeS.
A fund number will normally be assigned after receipt of the completed risk funding form.
Use of such funds should be limited to the essential expenditures in accordance with
anticipated budget limitations and sponsor terms and conditions.
In the event the award is not fully executed or initiated, costs incurred under the risk fund are
considered disallowed costs and the guaranteeing department must cover all expenses
incurred from non-sponsored funds. Costs may not be moved to another sponsored project
unless justified and approved by OSP Director as meeting the requirements of OMB Circular
A-21 and A-110.
Pre-award timing
In the event the award is executed but the start date is later than anticipated, unallowable
expenditures must be covered by the guaranteeing department. Costs shall not be moved to
another sponsored project without OSP Director approval; with the exception of
continuation funding.
Under no circumstances will costs incurred on behalf of a sponsored project be “parked” on
another fund in anticipation of receipt of the award document or a future fund set up and cost
transfer. If costs need to be incurred for a sponsored project, a risk funding form should be
submitted, as soon as possible, and costs should be expensed on a timely basis to the
appropriate risk fund for the project.
Contact: Director of Sponsored Programs, 910.962.3810, www.uncw.edu/policies
Request to Establish a Risk Fund
UNCW RAMSeS Proposal Number: ___________________________________
Department: ________________________________________________
Principal Investigator: ________________________________________
Sponsor: _________________________________________
Reason for risk fund:
___________________________________________________________________________
_____________________________________________________________________
Amount of risk budget requested: ___________________________________
Budget needed: _________________________________________________
__________________________________________________
__________________________________________________
___________________________________________________
__________________________________________________
Anticipated receipt date of formal award: ________________________________
Contact at sponsoring agency: _____________________________________
___________________________________________________________________________
___________________________________________________________________
Backup fund for expenditures incurred: _____________________________________
_______________________________________
Principal Investigator/Date
_______________________________
Unit Head/Date
Approved:
_______________________________________________________________
Director, OSP
Comments:
___________________________________________________________________________
___________________________________________________________________________
__________________________________________________________________
ATTACH BACKUP DOCUMENTATION TO SUBSTANTIATE REQUEST
(items such as award notifications, draft terms and conditions, emails from sponsor with
award amount, start and end dates, etc,)